Part 1 - Check Your Understanding - Answer the questions assuming an upward sloping SRAS . 1. Explain why an increase in price level results in an increase in the quantity supplied of goods and services in the short -run . 2. If the size of the labor force is constant , what will likely happen to unemployment as price level increases in the short -run ? Explain . 3. Explain why wages are more rigid (or sticky ) when price level falls rather than when price level increases Part 2 - Practice - For each of the following situations , identify the determinant (shifter ) and indicate if the short run aggregate supply (SRAS ) would most likely increase , decrease , or not change